Stella-Jones' 2Q 2022 sales amounted to $907 million, up from $903 million for the same period in 2021. Gross profit was $173 million in the 2Q 2022, versus $197 million, in the 2Q 2021, representing a margin of 19.1% and 21.8% respectively. The decrease in gross profit was primarily driven by the normalization of residential lumber gross profit, which outweighed the pricing gains and resulting gross profit margin expansion for utility poles and railway ties.
Similarly, operating income totaled $133 million in the 2Q 2022 versus operating income of $161 million in the corresponding period of 2021, and EBITDA decreased to $154 million, compared to $180 million reported in the 2Q 2021.
As a result, net income for the 2Q 2022 was $94 million, or $1.51 per share, compared to net income of $115 million, or $1.76 per share, in the corresponding period of 2021.
“Stella-Jones recorded solid results in the 2Q, above market performance, delivering sequentially higher margins and generating significant cash,” said Éric Vachon, President and CEO of Stella-Jones. “We are particularly pleased with the performance of our infrastructure-related businesses, which speaks highly to the wide reach of our expanded network and to our procurement and logistics capabilities to continue to meet strong demand. While inflationary pressures impacted costs of all product categories, we continued to successfully implement contractual price adjustments and generate healthy margins, underscoring the strength of our business model."
For the first six months of 2022, sales amounted to $1,558 million, versus $1,526 million for the corresponding period last year.
Gross profit decreased to $273 million, or 17.5% of sales, from $309 million, or 20.2% of sales, in the corresponding period last year.
Operating income amounted to $200 million, versus $243 million a year ago, while EBITDA was $242 million, compared to $279 million in the prior year.
Net income in the first six months of 2022 was $140 million, or $2.23 per share, versus net income of $171 million, or $2.61 per share, in the corresponding period last year.
Stella-Jones Inc. is North America’s leading producer of pressure-treated wood products.